ASIC has released its cost recovery implementation statement for 2017-18, which lays out how much the regulator expects to raise from the corporate sector via its new industry levy.
The total levy for financial advice licensees will be $29.51 million, of which the vast majority ($26.15 million) will be collected from “licensees that provide personal advice to retail clients on relevant financial products”.
ASIC expects to spend $9.76 million throughout 2017-18 on its enforcement activities relating to licensees that provide personal financial advice.
Areas of focus for ASIC in 2017-18 will be risk-based surveillance of the practises of financial advisers, advice compliance at the five largest financial advice firms, and monitoring of compliance and enforceable undertakings.
The total amount raised from the corporate sector throughout 2017-18 via the levy is expected to be $246.2 million, according to ASIC.
Listed corporations will be asked to stump up $33.96 million, and superannuation trustees and responsible entities will be on the hook for $7.20 million and $22.68 million, respectively.
Bit disappointed after taking the time to click and read that the article doesn’t even tell us how much this ‘levy’ will be for each licencee. Seemed that was the actual point of the headline, to explain this . . .no?
Consumers will be able to rest easy knowing the increased costs they pay, should they seek financial advice will help support a regulator with the best ready, shoot, aim approach to enforcement on the planet. Bravo.
ASIC(K Joke) continues it’s insane march to destroying our industry and ensuring the majority of Australian’s can’t afford us.
What’s your end game moron regulator, that your only ‘trusted’ wealth handlers are the ISA? And maybe a few big institutions who can afford to take the hits?
What professional industry in their right mind would accept that the self-appointed government regulator would demand an open cheque scheme of payment for an expanded bureaucracy to impose further regulation, without understanding that ultimately clients/ superannuants/ advised insurance clients/ retirees/ mums and dads/ investors must pay more for services that are needed more and more because of their bureaucratic approach to being an enforcer.
Name a professional industry that is regulated and charged an open ended cheque for regulatory services like our financial services industry!
Surely there has to be a better way!
one assumes that this cost will be passed onto the fees an adviser pays to the licencee and one then assumes that additional cost in some form will need to be passed on to the end consumer raising the costs of initial and ongoing advice. MMM one thinks us advisers will need to double down on our VPs !!!